Enbridge Inc Plans Quarterly Dividend of C$0.97 (NYSE:ENB)

Key Points

• Enbridge declared a quarterly dividend of C$0.97 per share, payable June 1 to shareholders of record May 15, implying a roughly 7.2% yield.
• The dividend may be unsustainable long-term: Enbridge's payout ratio is about 121.9%, and analysts' next‑year EPS forecast of $2.38 implies a future payout ratio near 116.8%, meaning the company is relying on its balance sheet to fund distributions.
• Shares recently traded near $54.24 (market cap ≈ $118.4B); Wall Street sentiment is a "Moderate Buy" with a consensus price target of about $65.00.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB declared a quarterly dividend on Wednesday, May 6th. Stockholders of record on Friday, May 15th will be given a dividend of 0.97 per share by the pipeline company on Monday, June 1st. This represents a c) annualized dividend and a dividend yield of 7.2%. The ex-dividend date of this dividend is Friday, May 15th.

Enbridge has decreased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Enbridge has a payout ratio of 121.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Enbridge to earn $2.38 per share next year, which means the company may not be able to cover its $2.78 annual dividend with an expected future payout ratio of 116.8%.

Enbridge Stock Performance

Shares of ENB traded down $0.68 during trading hours on Wednesday, hitting $54.24. The company's stock had a trading volume of 4,445,865 shares, compared to its average volume of 5,077,712. The company has a market cap of $118.43 billion, a price-to-earnings ratio of 23.58 and a beta of 0.59. The company has a debt-to-equity ratio of 1.70, a current ratio of 0.63 and a quick ratio of 0.55. The business has a 50 day simple moving average of $53.62 and a two-hundred day simple moving average of $50.00. Enbridge has a 52-week low of $43.59 and a 52-week high of $55.49.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last posted its earnings results on Friday, February 13th. The pipeline company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.03. The firm had revenue of $17.18 billion during the quarter, compared to the consensus estimate of $9.10 billion. Enbridge had a net margin of 11.30% and a return on equity of 11.19%. During the same quarter last year, the company earned $0.75 earnings per share. On average, equities analysts expect that Enbridge will post 2.2 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. JPMorgan Chase & Co. cut shares of Enbridge from an "overweight" rating to a "neutral" rating in a research note on Tuesday, January 27th. Scotiabank reaffirmed an "outperform" rating on shares of Enbridge in a research note on Tuesday, February 17th. Royal Bank Of Canada boosted their price objective on shares of Enbridge from $72.00 to $76.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. TD Securities cut shares of Enbridge from a "buy" rating to a "hold" rating in a research note on Tuesday, February 17th. Finally, Citigroup reaffirmed a "buy" rating on shares of Enbridge in a research note on Thursday, February 19th. Seven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $65.00.

Enbridge Company Profile

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.

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